Bank Muamalat to launch Islamic private banking

KUALA LUMPUR: Bank Muamalat Malaysia Bhd expects to launch Islamic Private Banking within a year to cater to the growing demand for the service.

Chief executive officer Datuk Mohd Redza Shah Abdul Wahid said the bank is currently studying the product concept and expected to complete the framework in the next six months.

"If everything is positive, we will launch Islamic private banking next year, and it will be the first to be introduced in Malaysia," he told reporters after signing a memorandum of understanding with the Bank of London and the Middle East Plc on Tuesday.

Mohd Redza said currently Bank Muamalat has a private banking product, especially in wealth management, however, it was not invented in a wholesome manner.

The bank would use this collaboration as a platform to penetrate the new segment in a wholesome approach and it would then improve its local Islamic banking in terms of investment, he said.

He also said that the Bank of London and the Middle East had the expertise in dealing with private banking customers, therefore it was a good opportunity for Bank Muamalat to work together with the bank.

This cross border-typed initiatives between two financial institutions in two countries would allow us to share our expertise, and we would approach the market to offer our services, he said. "We will expand our product globally, after successfully serving the local market," he added.

Asked if the two banks would consider a merger and acquisition and form another company, he said they were open to it as long as it brought value to the shareholders and the company.

Currently, Malaysia's market share in the global Islamic finance stands at 25%, an increase of 2% from last year. Out of that,6% was contributed by Bank Mualamat.

"We expect the industry in Malaysia to see a continuous growth of 2% year-on-year," he said. - Bernama